mistakes that I made when I first started a trading and what I would do
differently if I could go back in time and talk about it in this video so
admitting your mistakes looking back at what you've done wrong and figuring out
what you can do better is always hard it's hard as a human to be able to admit
that you were wrong in the first place and I was wrong about a couple different
things my first hard day trading I had really no clue what I was doing first
started what was I doing what was I thinking who in the world told me what I
was doing and I think about that I'm like yeah I I had really crazy ideas
when I first are day trading I really thought that I could make a lot of money
right away and that really played against me so the idea right away that I
was gonna get rich day trading was really a bad idea and I think a lot
people have that issue it's almost impossible to start day trading today
and get rich tomorrow I mean unless you're just the luckiest person the
world I don't think it's possible what would I do differently if I go back in
time if I could tell myself I would tell myself to not bet on er's
if that makes any sense for so ER is an earnings report and I thought when I
first heard a trading that that was a great way to make money I could just bet
on yours but it was basically gambling there was stocks I would do research on
I'm like oh this stock has a good er come and that earnings gonna be amazing
so I would buy this talk before the ER the ER would hit I thought I knew what I
was doing I thought wow I have a really good plan here and all of a sudden crash
the ER would come out the stock would crash and then I would be like what did
I do so I would lose thirty forty percent
right away and that really killed me I tell people when you first start date
trading stay away from ER stay away from biotechs that have possible approvals or
news coming to stay away from you know day trade them a little bit but do not
bet on ers do not bet on FDA approvals almost 99% of the time you're going to
lose on those kinds of bits another mistake that I made when I first our day
trading was I traded nugget I traded the gold ETFs I traded the volatility ETF I
traded the oil ETFs which was a bad bad idea and I you know people like well why
is it a bad idea people do it every day when you first start date trading you
don't understand what's going all of these ETS I still tend to say I normally
never trade the ETFs I'll trade TV i xu be XY when if you
know markets really crashing or something but overall I stay away from
those ETFs because it's just no way of telling what's gonna happen there's so
many indicators so many different variables that control those price to
those ETFs and they move so fast up and down it's really hard the support
doesn't matter the resistance areas don't matter it's so different and I
would just stay away from I would tell most new day traders to stay away from
any kind of three times ETF they are very very volatile and very dangerous to
blow up your account very quickly so another issue that I had was I was
buying way too many shares from my account size a lot of times I would go
all in on a stock and I would think oh the stocks going up and going all in and
I would literally go all in I put $10,000 into one stock and I'd basically
hope and pray that it would go higher a lot of times it wouldn't go anywhere or
it would crash and I would lose another thing that I did is that would buy
stocks before close with Robin Hood and back in the day Robin Hood you weren't
able to sell or buy after hours so I would buy a stock you know today with
the goal of selling it tomorrow morning for a increase in price right well so it
makes sense you know hey yes that sound like a good idea but it was really
dangerous there was a lot of days where I would wake up the stock would be up
high in premarket and by the time the market actually opened the stock would
crash and I wouldn't be able to sell for profit I end up losing money so make
sure that if you are holding stocks overnight that you're using a broker
that allows you to trade pre market in after-hours because you never know with
some of these talks what's gonna happen after hours or pre market if the stock
starts crashing you can't take profit so make sure your broker allows you to
trade after hours another mistake that I made when I first started trading was I
tried to trade all day long I wanted to make a lot of money and I had the idea
that hey if I could trade all day long I would increase my chances of making
money right so I would just spend for nine o'clock till four o'clock trading
all day long and I'd make a hundred trades it sounds like a good idea right
well I made a lot of trades it increases my chances of making a big home run well
even if I broke even on every single trade the commissions would kill me and
another day I was like man I made a hundred bucks but my Commission's are
three hundred dollars so it never worked out I think a lot of traders do that
when they first started out they have profits in the morning they make money
maybe on a couple stocks in the morning and then by the end of the day they keep
trading they keep trading and their commissions
racking up before they know what they're paying more in commissions in their
profit so stay away from over trading stay away from the idea that you need to
trade all day long take the profit walk away set a goal set your goal low you
know I wanna make hundred dollars today that's my goal for the day if I make a
hundred ours I'm done and do it make a hundred hours be done walk away take
your profit and go do something else you don't need to trade all day long so
that's one of the big mistakes that I made when I first started day trading
was I traded all day long so don't do it don't trade all day long it's not a good
idea so another mistake that I made when I
first started a trading was I had no understanding of the actual basics of
day trading I didn't understand a support/resistance I didn't understand
the different indicators on the chart I was using a line chart on Robin Hood and
I had no idea what I was doing so you need to learn the basics watch videos
about the basics there's tons of videos out there on YouTube on Google just
Google day trading basics you can watch my playlist called the day trading crash
course was gonna break down a lot of those basics learn about the
candlesticks learn about what's going on with the stock market and don't just
look at a line looking at a line chart it's probably the worst thing you can do
when you don't have any idea of what's really going on I didn't look at level
two I don't even know what level two was learned what level two was I was like
wow I didn't even know it was here so I think I traded for about six months
without even knowing there was at level two so once I learned about level two
then it really opened up a whole different picture because then I had an
idea of what the stock was doing so really make sure you learned about the
basics of day trading before you go and blow up your whole entire cow don't put
$20,000 into a stock and you don't even know how to buy or sell the stock don't
do it I see people they're like hey I bought this stock but now I can't sell
what's wrong how do I sell it you gotta learn how to execute a trade before you
start day trading so make sure you focus on that that's one of my big mistakes
another big mistake that I had when I first started day trading was I did not
cut my losses I would get into a trade and say I bought it at $1 the stock
started going down I'd be like well I'll give it some time and before you know
it's at 80 cents and then I'm like huh I'll give us some time before you know
it says 60 cents so now it's like yeah it's already down so low I might as well
give it a chance to come back up right well then it's out 40 cents and I'm
thinking about so my gosh what am i doing and then finally I'd cut my loss
and then the stock would go back up the thing you need to focus on is really
going into every single trade with a plan having your stop-loss ready cutting
your no matter what cutting you stop just
cutting getting out of that stock no matter what even the stock you think it
might go higher later just cut your loss you can buy it back later if you want
another mistake that I made when I first start day trading was I didn't
understand my brokers rules so if using a broker like sure trader make sure you
understand all their fees all their rules they have different rules about
margin different rules about the end of the day margin make sure you understand
all those so those fees don't add up and that way you're not like wow why do they
do that to me why do they charge me that fee people get mad because their trade
or charge them fees but it's very simple the rules are there they tell you that
you can only have two to one margin after 3:30 but so many people don't
follow the rules they don't understand the rules they just start day trading
and they don't have an idea of what they're doing so learn your brokers
rules no matter which broker you have understand the Commission's understand
the fees and understand the rules of that broker that's very important when
you first start out day tree another mistake that I had when I first started
day trading was I did not short sell I didn't understand how to sort so they
didn't really think it was a good idea because all I thought about was short
selling was too dangerous source selling there's an infinite loss possibility so
say if I short sell a stock at $2 it goes to $10 I could lose $8.00 per share
where if a stock goes down I can only make $2 per share so there's a lot
bigger risk when you're short selling but the thing with short selling is it's
a great tool to use when you're day trading because there's going to be
opportunities to short sell stocks that are crashing down stocks that maybe you
went long early the morning they start going lower so then you go short so when
you learn more about day trading you'll start to learn more about short selling
you'll learn about how short sellers work how long biased traders work and
you combine those and you have an idea of okay I can go short maybe I can go
long and it gives you more options if you're only looking at stocks for the
long pass ability or gonna miss out on a lot of big moves that you could have
made capitalizing on both different ways to play it so a lot of stocks will go up
really big and they'll crash down really big so understanding short selling is a
great tool and then learning more about short selling when you first start out
is a good idea I'm not saying you should go in store
sell every single stock that you see but you'll learn over time what stocks have
really good opportunities to short sell that are going lower and I'm longer that
you learn about that the better it's also good to understand the dynamics of
how short sellers work and where short sellers might be in the stock and how
that all dictates the price of the stock so you kind of learn that there's
another person out there who's also betting against the stock
when you're betting that it might go higher and you get an idea of how it all
works so kind of learn about short selling so obviously I made a lot of
mistakes when I first started learning on a day trade I can't go back in time
and change those mistakes now but but hopefully this video helps you guys
understand some of those mistakes that I made and how you can stay away from
those and how you can stop yourself from making those same mistakes that I did if
you haven't already make sure you subscribe this channel help me help you
and I will talk to you guys later